Leading brokers name 3 ASX shares to sell today

Commonwealth Bank of Australia (ASX:CBA) shares are one of three that leading brokers named as sells…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On Monday I looked at three ASX shares that have been given buy ratings by leading brokers this week.

Unfortunately, not all shares are in favour with brokers right now. The three shares listed below have all just been given sell ratings. Here's why they are bearish on them:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Goldman Sachs, its analysts have retained their sell rating and $74.58 price target on this banking giant's shares. The broker believes that CBA's strong deposit franchise leaves it more vulnerable to lower rates. Especially given the broker's expectation that the Reserve Bank will cut the cash rate in November. Goldman also notes that CBA has the highest exposure to more competitive mortgages. Overall, it feels it is expensive on both relative and absolute terms. The CBA share price is currently changing hands at $80.29.

Costa Group Holdings Ltd (ASX: CGC)

A note out of the Macquarie equities desk reveals that its analysts have downgraded this horticulture company's shares to an underperform rating and slashed the price target on them to $2.51. According to the note, Macquarie made the move in response to Costa's fourth earnings downgrade of the year. It also notes that earnings visibility remains limited and appears concerned that its guidance for next year may be too optimistic. Costa's shares are still suspended but last traded at $3.46.

Sims Metal Management Ltd (ASX: SGM)

Analysts at UBS have retained their sell rating and cut the price target on this scrap metal company's shares to $8.05. According to the note, the broker cut its price target following Sims' disappointing trading update on Monday. That update revealed that tough market conditions mean Sims expects to post a first half EBIT loss of up to $30 million. Although UBS feels there are signs that things are stabilising, it remains too soon to change its rating. Especially given the downside risks to its earnings in the second half. The Sims share price is trading at $9.67 this afternoon.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »